10 times in your life when you need a financial adviser

There are certain life events that may force you to think about your financial responsibilities. To address these needs, it is often a good idea to speak to a financial adviser. They can help you to make sound decisions about your finances, using their technical knowledge and specialist tools.

So, when do you need to seek financial planning advice?

1. When you are planning for retirement

You will need to decide how you are going to use your retirement savings and pension pot to provide you with an income for the rest of your life.

It is therefore important to ensure that you are not going to be eroding the capital value at such a rate that you may end up running out of savings. Cash flow modelling can be the first step in the process.

2. When you have inherited money

When inheriting money, depending on your circumstances, it might make sense to pay off some of your debts, or even invest some of it. While this can be a helpful financial windfall, it may also be an emotional time when you have lost someone close to you.

It is therefore a good idea to take a step back and seek expert advice on the best way to spend your inheritance, so you do not waste it.

3. When you get married

There are many allowances and tax reliefs that are available to married couples that are not available for individuals. This provides an opportunity to re-arrange your finances to minimise your tax bill.

4. When you have a child

Having a baby is, of course, one of the most special times in a couple’s life. The arrival of a baby also brings a big financial commitment. Just like how you plan for their clothes and toys, you must also plan for their financial security - for example, by purchasing life insurance. You may also find yourself setting new financial goals such as saving for your child’s education or wedding.

5. When you are getting divorced

Splitting up from a long-term partner is likely to have a big impact on your life; both financially and emotionally. Unfortunately, the financial impact of divorce does not stop with settling large legal fees. A divorce is likely to affect your retirement planning and your other long-term financial goals.

It is therefore important that you ensure your share of the divorce settlement is still invested as tax-efficiently as possible and you are on track to meet your own financial goals.

6. When your parent is moving into a care home

Choosing the right care home for a parent is crucial. Working out how to pay for care home fees is just as important. This process can be very complex as there lots of moving parts and various taxes you will need to think about. Making the wrong decision can often have significant financial impact on you and your family.

7. When you become an additional rate or higher rate taxpayer

Having higher income is a great opportunity to build wealth. It does, however, also usually mean a higher tax band. It is therefore important that you use many tax-efficient saving vehicles, as well as tax allowances, to ensure you are not paying over the odds.

8. When you are disappointed with the returns of your savings

With interest rates at their historic lows, most of us are disappointed with interest rates that available for cash deposits. When you take inflation into account, the buying power of capital you have on deposit is likely to fall over time. You may therefore wish to put your money somewhere that it can work harder for you.

9. When you have a lot of investments, but don’t have time to manage your portfolio

Managing your portfolio to ensure it is well-diversified and suitable for your financial goals can quickly become cumbersome. As your investments grow, a financial adviser can help you to select the best investments to suit your needs and monitor them on a regular basis.

10. When you enjoy managing your investment portfolio, but would like some guidance

When investment markets rise, most investments tend to well - even self-selected ones. However, just because your investment is doing well does not necessarily mean you are getting best possible risk-adjusted returns. It may therefore be useful to see if your investments can be re-organised.

How can I speak to a financial adviser?

We offer a no obligation first meeting where we can meet and discuss your needs and how we can help you achieve your goals and objectives.

To arrange this please call our team on 0207 490 7766 or email our Chartered Financial Planner, Görkem Gokyigit (GorkemGokyigit@lfwm.co.uk).

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